Steel Dynamics (NASDAQ:STLD – Get Rating) posted its quarterly earnings results on Wednesday. The basic materials company reported $4.37 EPS for the quarter, topping analysts’ consensus estimates of $3.60 by $0.77, RTT News reports. Steel Dynamics had a net margin of 18.99% and a return on equity of 65.26%. The company had revenue of $4.83 billion for the quarter, compared to analysts’ expectations of $4.77 billion. During the same quarter in the previous year, the firm posted $5.78 EPS. Steel Dynamics’s revenue was down 9.1% on a year-over-year basis.
Steel Dynamics Trading Up 2.2 %
NASDAQ STLD traded up $2.38 during trading on Wednesday, hitting $110.41. 1,947,960 shares of the company’s stock traded hands, compared to its average volume of 1,587,538. The stock has a fifty day moving average of $104.60 and a two-hundred day moving average of $89.13. The company has a debt-to-equity ratio of 0.39, a current ratio of 3.67 and a quick ratio of 2.08. Steel Dynamics has a 12-month low of $52.26 and a 12-month high of $113.71. The firm has a market cap of $19.38 billion, a P/E ratio of 4.79 and a beta of 1.46.
Steel Dynamics Announces Dividend
The business also recently announced a quarterly dividend, which was paid on Friday, January 13th. Investors of record on Saturday, December 31st were given a $0.34 dividend. The ex-dividend date of this dividend was Friday, December 30th. This represents a $1.36 annualized dividend and a yield of 1.23%. Steel Dynamics’s dividend payout ratio (DPR) is presently 6.00%.
Hedge Funds Weigh In On Steel Dynamics
A number of institutional investors and hedge funds have recently made changes to their positions in STLD. Cetera Advisor Networks LLC grew its holdings in shares of Steel Dynamics by 43.5% during the first quarter. Cetera Advisor Networks LLC now owns 5,510 shares of the basic materials company’s stock valued at $460,000 after buying an additional 1,670 shares during the last quarter. Natixis Advisors L.P. raised its position in shares of Steel Dynamics by 23.8% during the 1st quarter. Natixis Advisors L.P. now owns 21,577 shares of the basic materials company’s stock valued at $1,800,000 after purchasing an additional 4,154 shares during the period. Bank of Montreal Can raised its position in shares of Steel Dynamics by 36.5% during the 1st quarter. Bank of Montreal Can now owns 59,369 shares of the basic materials company’s stock valued at $4,970,000 after purchasing an additional 15,865 shares during the period. Blair William & Co. IL raised its position in shares of Steel Dynamics by 20.5% during the 1st quarter. Blair William & Co. IL now owns 5,852 shares of the basic materials company’s stock valued at $488,000 after purchasing an additional 996 shares during the period. Finally, Aviva PLC increased its holdings in Steel Dynamics by 4.5% in the 1st quarter. Aviva PLC now owns 64,576 shares of the basic materials company’s stock valued at $5,388,000 after acquiring an additional 2,772 shares during the last quarter. Institutional investors own 79.54% of the company’s stock.
Steel Dynamics announced that its board has initiated a stock repurchase plan on Thursday, November 10th that allows the company to buyback $1.50 billion in shares. This buyback authorization allows the basic materials company to repurchase up to 8.8% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s leadership believes its stock is undervalued.
Analyst Upgrades and Downgrades
A number of equities research analysts have issued reports on the stock. Morgan Stanley boosted their target price on shares of Steel Dynamics from $78.00 to $85.00 and gave the company an “equal weight” rating in a report on Friday, October 21st. StockNews.com cut shares of Steel Dynamics from a “buy” rating to a “hold” rating in a report on Thursday, November 24th. UBS Group lowered shares of Steel Dynamics from a “buy” rating to a “neutral” rating in a research report on Monday, December 5th. BMO Capital Markets boosted their price target on shares of Steel Dynamics from $89.00 to $100.00 and gave the company a “market perform” rating in a research report on Monday, November 14th. Finally, Bank of America initiated coverage on shares of Steel Dynamics in a research report on Wednesday, January 4th. They set a “buy” rating for the company. Four analysts have rated the stock with a hold rating and three have given a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $99.83.
Steel Dynamics Company Profile
Steel Dynamics, Inc, together with its subsidiaries, operates as a steel producer and metal recycler in the United States. It operates through three segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. The Steel Operations segment offers hot roll, cold roll, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; and engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars.
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